Subordinated Debt Program

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Meeting strategic goals and initiatives is paramount for every credit union. Achieving them is sometimes challenging for a number of reasons. Net worth is one of them.

Net worth should not be a limitation for credit unions to effectively grow, expand, and provide value to their members. Fortunately for credit unions, federal and state examiners agree, along with a number of Catalyst clients. Catalyst's Subordinated Debt Program provides credit unions a means for overcoming net worth limitations, through the issuance of subordinated debt notes that can be counted toward a credit union's net worth ratio.

Subordinated debt can help credit unions:

  • Increase Lending: Higher net worth supports larger loan portfolios. Subordinated debt enables credit unions to originate and portfolio more loans.
  • Strengthen Growth: Achieve growth levels above the rate of organic earnings.
  • Fund Expansion: Whether seeking acquisitions, expanding geographically, or looking to build out your branch network and invest in technology, subordinated debt provides capital to support these strategies, while avoiding net worth dilution.
  • Restore Levels: After a long trend of growth, regardless of the cause, net worth may need to be restored back to desired levels; subordinated debt can make this happen quickly.

Catalyst has helped credit unions successfully obtain regulatory approval and secure funding to support their unique strategies. We can help you, too!

Contact Us Today!

Recent Deals:

P1FCU Logo
Subordinated Debt:
$20 Million in Capital
NCUA Region:

 Western
CU Asset Size:
> $1 Billion
Underwriter:
CSS Logo
Placement Agents:

Catalyst Corporate FCU and CU Investment Solutions LLC

First Financial logo
Subordinated Debt:
$4 Million in Capital
NCUA Region:

 Western
CU Asset Size:
$500 Million -  $1 Billion
Underwriter:
CSS Logo
Placement Agents:

Catalyst Corporate FCU and CU Investment Solutions LLC

First Financial logo
Subordinated Debt:
$4 Million in Capital
NCUA Region:

 Western
CU Asset Size:
$500 Million -  $1 Billion
Underwriter:
CSS Logo
Placement Agents:

Catalyst Corporate FCU and CU Investment Solutions LLC

Neighbors logo
Subordinated Debt:
$8 Million in Capital
NCUA Region:

  Southern
CU Asset Size:
> $1 Billion
Underwriter:
CSS Logo
Placement Agents:

Catalyst Corporate FCU and CU Investment Solutions LLC